Best Credit/Charge Card Chances for recent DMP graduate?

[Lynnst]

I recently successfully completed a DMP.  Right on the heels of that I had to purchase a vehicle and had no problem getting top tier financing through the dealer.  I applied for Amex Zync online and was declined.  Was it just too soon to apply or am I going to have trouble getting a credit/charge card anywhere?  My scores: 8/4/12 TU 761, EQ 704, EX 786 (pulled by car dealer).  Annual income = $60,000.  I thought of talking to the credit union I have been a member of for over 10 years about a credit card through them.  Any suggestions on how long I should wait to apply?  Any suggestions on where I should apply? Thanks.

[jamesdwi]

What credit cards do you have and for how long? any lates or chargeoffs, how many INQ's did the car dealer(s) give your report? Is your income enough to support your new car loan and a charge card?

for AMEX zync they like a 640+ EX FICO score, and 6+ months of experience with a credit card

[jamie123]

Okay....I'll take a try at this.

A question first....

What is a DMP graduate?  DMP?

Your scores are great! The reason you were probably denied by AMEX is that you don't have any/enough history using revolving credit. AMEX is a prime bank and most prime banks like to see 1 year of good credit behavior with MULTIPLE credit cards before approving you for their credit.

My suggestion would be to apply for a Capital One rewards card and a Walmart card. You should be a shoe in for approval with Cap1 and Walmart. If you sign up for paperless invoicing with Walmart, you get a free TU FICO score for free every month.

After your Cap1 card and Walmart card are 6 months old you might consider re-apping for the AMEX Zinc. They really like to see 1 year but with your scores you might be approved at that point.

You really only want to build credit from prime banks. When your Cap1 and Walmart cards turn 1 year old consider apping for 1 card each from 2 of the following prime banks:

CitiBank

Chase

AMEX

Bank of America

Discover

Wells Fargo

Barclays

So, just what is a DMP?

Make sure you stop back to let us know what you decided to do, and how it turned out.

Good luck!

[Lynnst]

Currently no credit cards.  I'm an AU on one long term account.  I spent the last 4 years learning to strictly live within my means and I have no debt other than the car loan.  I simply wanted to work on re-establishing my credit - hence applying for a CC.  I would only use it for things already in my budget, ie. gas and groceries, and I would pay it off every month.  I am saving to buy a home so I want to have my credit in good all around shape come mortgage time in a few years.   

[jamesdwi]

Looks like you need to start with either a sub-prime credit card possibly a secured card,  see if capitalone has any pre-approvals for you else, app and see if they give you a card perhaps the AU is enough to get in the door and you won't have to go the secured route, keep the card for 6 months to a year then you can AP for a amex zync charge card after a year credit experience you should be in a good place and can app for full prime cards if you your UTL is low and don't App for everything in sight. 

[Lynnst]

Thanks for the response jamie123.  DMP = debt management program.  It surely did wonders for my credit scores to pay off all my debts - but my credit report shows my prior accounts were in a debt management program.  I will clearly have to find some steps to take to show that I have learned how to handle a credit card.  Believe me, I know that taking responsibility for my behavior is part of moving on and not making the same mistakes.  I will give it some more time and perhaps try some of your suggestions. 

[Lynnst]

Thanks for the suggestions jamesdwi.  I will investigate these options and take some baby steps.  I will get there eventually.

[LS2982]

I would recommend Cap1 as well, try for secured version. Keep increasing the deposit for 12 months then go for AMEX.

[marty56]

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@jamesdwi wrote:

Looks like you need to start with either a sub-prime credit card possibly a secured

---

No.

Your approval will totaly dependant on your FICO score and contents of your CR sans the comments about beiong in a DMP.  I have yet to encounter any creditors who cared about the comment about being in a DMP on my CR.

[jamie123]

You should REALLY try applying for the Capital One UNSECURED card first. You can always get the secured version if they deny you. Cap1 is the most forgiving of the national credit card lenders, I say you have a good chance at approval. Make sure you do a recon if they don't immediately approve you.

Walmart should also approve you!

You can do it! Time to take the next step in your credit rebuilding journey!

Make sure to stop back and let us know how it goes. Interested parties want to know!

Good luck!